Stock fact sheet · data as of
Brown & Brown, Inc. (BRO): fair value, margin of safety and Wheel Score
Ticker symbol BRO · Financial Services · Insurance - Brokers · United States · Growth
Is BRO undervalued?
Brown & Brown, Inc. (BRO) closed at 73.89 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 90.70, so the price sits 19% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between DDM (9.93) and Payback Time (158.96). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
Ranked against every other company we cover, BRO is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 44, growth score 73, out of 100).
Nine valuation models for BRO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 130.33 | +76% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 57.14 | -23% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 110.29 | +49% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 40.47 | -45% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 153.82 | +108% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 113.69 | +54% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 158.96 | +115% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 9.93 | -87% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 41.64 | -44% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -26.54 | -136% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 72.67 | -2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Brown & Brown, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the "Piotroski 6 or more" Wheel Trade Filter. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 9.1/10 puts BRO among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
Returns on capital are moderate - ROIC 5.2%, ROE 8.4%, ROA 3.5% - with debt at 0.63 times equity and a free-cash-flow yield of 6.1%.
The dividend yield is 0.91% with a payout ratio of 19% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Retail 57%, Specialty Distribution 43% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 5.2% |
|---|---|---|---|
| GLS Moat | 9.1 / 10 | ROE | 8.4% |
| Debt / equity | 0.63 | ROA | 3.5% |
| Free-cash-flow yield | 6.1% | Payout ratio | 19% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 1 / 10 |
Wheel Score 80: Good
With a Wheel Score of 80 - the Good band - Brown & Brown, Inc. passes all 9 Wheel Trade Filters. How it ranks: value good, premium strong, moat strong, health good, red flags good, option trading weak, stability strong. Option trading (weak) is the part keeping it out of the Prime band.
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 6,397 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 2.1M shares a day on a market cap of $24.5B, with a beta of 0.59 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Good | 19% below fair value | |
| Premium | Strong | implied volatility 36% | |
| Moat | Strong | moat 9.1/10 | |
| Health | Good | Piotroski 6/9 | |
| Red Flags | Good | Red Flags score 82/100 | |
| Option trading | Weak | 587 contracts a day, 6,397 open interest | |
| Stability | Strong | beta 0.59, $24.5B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 25 Jan 2027, 81 days away - outside the window of a 30-45-day put sold today.
Analysts upgraded BRO 1 time in the last 30 days with no downgrades; the latest action was new coverage by Cowen & Co. on 12 Oct 2026.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Insurance - Brokers
The 12 companies below are the closest to Brown & Brown, Inc. by market cap within the Insurance - Brokers industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| WTW Willis Towers Watson Public Limited Company | 337.37 | 382.34 | +12% | 36Weak | $31.1B |
| AON Aon plc | 344.67 | 413.95 | +17% | 71Good | $73.1B |
| AJG Arthur J. Gallagher & Co. | 288.38 | 160.65 | -80% | 43Weak | $73.9B |
| MRSH Marsh & McLennan Companies, Inc. | 210.38 | 158.89 | -32% | 41Weak | $100.4B |
| RYAN Ryan Specialty Holdings, Inc. | 47.54 | 38.59 | -23% | 39Weak | $5.8B |
| CRVL CorVel Corporation | 87.38 | 66.84 | -31% | 41Weak | $4.4B |
| NP Neptune Insurance Holdings Inc. | 28.55 | 13.69 | -109% | 36Weak | $2.7B |
| BWIN The Baldwin Insurance Group, Inc. | 32.14 | 27.30 | -18% | 11Weak | $2.6B |
| LIFE Ethos Technologies Inc. | 37.13 | 20.58 | -80% | 30Weak | $2.4B |
| GSHD Goosehead Insurance, Inc | 56.35 | 64.68 | +13% | 37Weak | $2.0B |
| TWFG TWFG, Inc. Common Stock | 29.58 | 44.50 | +34% | 33No options | $381M |
| WDH Waterdrop Inc. | 1.01 | 45.70 | +98% | 33No options | $365M |
⚖ Compare BRO with 7 of them All Financial Services stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about BRO
Is BRO undervalued right now?
By the GLS models, moderately: at 73.89 the stock trades 19% below the average fair value of 90.70 (data as of 5 Nov 2026).
What is the Wheel Score of BRO and what does it mean?
BRO scores 80 out of 100 (Good). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for BRO?
90.70 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Brown & Brown, Inc. report earnings next?
The next earnings report is due on 25 Jan 2027, 81 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does BRO have listed options, and how liquid are they?
Yes. The nightly snapshot found 44 listed contracts with 6,397 open interest across all expiries and implied volatility of 36% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.